AGENDA TITLE:
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Adopt a Resolution Authorizing Interim City Manager to Execute Amendment No. 7 to Professional Services Agreement with ICR Refrigeration, Inc., of Lodi, for On-Call Heating, Ventilation, and Air Conditioning Services ($40,000) (PW)
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MEETING DATE:
June 3, 2026
PREPARED BY:
Interim Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a resolution authorizing Interim City Manager to Execute Amendment No. 7 to Professional Services Agreement with ICR Refrigeration, Inc., of Lodi, for On-Call Heating, Ventilation, and Air Conditioning (HVAC) Services in an amount not to exceed $40,000
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BACKGROUND INFORMATION:
The Public Works Facilities Division has a contract for maintenance and replacement of the heating, ventilation, and air conditioning (HVAC) systems citywide on an as-needed basis. The background of the current contract is described below.
On May 19, 2021, Council authorized the City Manager to execute the Professional Services Agreement with ICR Refrigeration, Inc. in the amount of $500,000. This was based on needing approximately $250,000 per year for citywide maintenance. The original agreement included a two-year term with options for three (3) one-year extensions.
On April 19, 2023, Council authorized Amendment No. 1, which extended the term through June 30, 2024 and increased funding by $250,000 for a total not-to-exceed contract amount of $750,000. This increased amount coincided with the extension for Fiscal Year 2023/24.
On December 26, 2023, the City Manager executed Amendment No. 2, which increased funding by $320,000, for a total not-to-exceed contract amount of $1,070,000. This amount was added primarily to cover the cost of replacing Police Department AC Unit #3 ($270,000) that after 20+ years of service, had reached its useful life. ICR was the lowest bidder for AC Unit #3’s replacement, so that work was added to this contract in order to expedite the unit’s replacement.
On July 30, 2024, the City Manager executed Amendment No. 3, which extended the contract through June 30, 2026. At that time, there was still a portion of the funding still available from Amendment No. 2, so additional funds were not added.
On February 5, 2025, Council authorized Amendment No. 4, which added $100,000 to the contract to allow for services through FY 2024/25.
On October 1, 2025, Council authorized Amendment No. 5, which added $100,000 to the contract to allow for services to continue into FY 2025/26.
On January 7, 2026, Council approved Amendment No. 6, which added $120,000 for an emergency replacement of the two (2) large boilers at the Lodi Police Station.
Amendment No. 7, if approved will increase the contract by $40,000 to a total contract amount of $1,430,000. This amendment will allow the contractor to complete any necessary repairs through the end of the contract term (June 30, 2026). The additional funding will be utilized for preventative maintenance and unforeseen HVAC repairs.
Bid documents are currently being prepared for the next on-call HVAC contract, which will be presented to Council for approval at an upcoming meeting.
FISCAL IMPACT:
This item has minimal long-term fiscal impacts.
FUNDING AVAILABLE:
This contract, including this additional amount, is funded through various operating accounts that were previously approved in the adopted Fiscal Year 2025/26 Budget